HARBIN, China, July 21, 2017 /PRNewswire/ -- China XD Plastics
Company Limited (NASDAQ: CXDC) ("China XD Plastics" or the
"Company"), one of China's leading
specialty chemical players engaged in the development, manufacture
and sale of modified plastics primarily for automotive
applications, today announced the official signing of investment
agreements between its subsidiary,
Heilongjiang Xinda Enterprise Group Company Limited, and the
Management Committee of Harbin Economic - Technological Development
Zone with respect to the industrial
project for 300,000 metric tons of biological composite
materials, the industrial
project for upgrading existing equipment for 100,000 metric tons of engineering
plastics and the industrial
project for a 3D printing
intelligent manufacture demonstration factory and a 3D printing display and experience cloud
factory (the "Project").
"The official signing of the
investment agreements for the
Project is another milestone for the Company," said Jie Han, Chairman and CEO of China XD Plastics.
"This Project will help the Company
to expand its product mix into
bio-based composites, 3D printing
materials and functional masterbatch materials while maintaining
our traditional petroleum-based materials. Paving the path to
non-auto applications and further diversifying our company's
business as a key element of our strategic plan.
In its 'Made in China 2025' and
'The Thirteenth Five-Year Plan', the Chinese Government highlighted biological composite materials
and additive manufacturing used composite materials as key planning
technology areas and clearly stated
the importance of strengthening
R&D in bio-based polymer materials, and developing bioplastics packaging,
bioplastics auto parts and other
related areas as part of a nationwide initiative in
supply side reform to promote the field of additive
manufacturing used composite
materials. Encouraged by the strong demand and market
potential for biological composite materials, additive
manufacturing used composite
materials and functional masterbatch materials, the Company's Board
of Directors preliminarily approved the Company's strategic
investment in these initiatives in
December 2016 and on June 1,
2017, respectively. The Company's
Board of Directors subsequently
ratified the Company's capital
investment in the Project.
As part of the Company's strategic investment, the Company will
develop 120,000 metric tons
of capacity for petroleum-based materials, 300,000
metric tons of capacity for biological composite materials and
10,100 metric tons of capacity
for additive manufacturing used
composite materials pursuant to the Project. The total capital
expenditures for the Company will
be RMB 4.15 billion (estimated to be
US$ 614 million). Both the industrial project for 300,000 metric tons
of biological composite materials and the industrial project for a
3D printing intelligent manufacturing demonstration factory and a
3D printing display and experience cloud factory are expected to be
completed by the end of July 2019.
The industrial project for upgrading existing equipment for 100,000
metric tons of engineering plastics is expected to be completed by
the end of June 2018.
About China XD Plastics Company Limited
China XD Plastics Company Limited, through its wholly-owned
subsidiaries, develops, manufactures and sells polymer composites
materials, primarily for automotive applications. The Company's
products are used in the exterior and interior trim and in the
functional components of 29 automobile brands manufactured in
China, including without
limitation, AUDI, Mercedes Benz,
BMW, Toyota, Buick, Chevrolet, Mazda, Volvo, Ford, Citroen, Jinbei
and VW Passat, Golf, Jetta, etc. The Company's wholly-owned
research center is dedicated to the research and development of
polymer composites materials and benefits from its cooperation with
well-known scientists from prestigious universities in China. As of March 31,
2017, 410 of the Company's products have been certified for
use by one or more of the automobile manufacturers in China. For more information, please visit the
Company's English website at http://www.chinaxd.net, and the
Chinese website at http://www.xdholding.com.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the Company's growth
potential in international markets; the effectiveness and
profitability of the Company's product diversification strategy;
the impact of the Company's product mix shift to more advanced
products and related pricing policies; the effectiveness,
profitability, and the marketability of its the ongoing mix shift
to more advanced products; and the prospect of the Company's
Harbin facilities. These
forward-looking statements can be identified by terminology such as
"will," "expect," "project," "anticipate," "forecast," "plan,"
"believe," "estimate" and similar statements. Forward-looking
statements involve inherent risks and uncertainties and are based
on current expectations, assumptions, estimates and projections
about the Company and the industry. A number of important factors
could cause actual results to differ materially from those
contained in any forward-looking statement. Potential risks and
uncertainties include, but are not limited to, the global economic
uncertainty could further impair the automotive industry and limit
demand for our products; fluctuations in automotive sales and
production could have a material adverse effect on our results of
operations and liquidity; our financial performance may be affected
by the prospect of our Dubai
facility and the associated expansion into Middle East, Europe and other parts of Asia; the withdrawal of preferential
government policies and the tightening control over the Chinese
automotive industry and automobile purchase restrictions imposed in
certain major cities may limit market demand for our products; the
slowing of Chinese automotive industry's growth; the concentration
of our distributors, customers and suppliers; and other risks
detailed in the Company's filings with the Securities and Exchange
Commission and available on its website at http://www.sec.gov. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or to changes in its expectations, except as may be required by
law. Although the Company believes that the expectations
expressed in these forward looking statements are reasonable, it
cannot assure you that its expectations will turn out to be
correct, and investors are cautioned that actual results may differ
materially from the anticipated results.
Contacts:
China XD Plastics
Mr. Taylor Zhang, CFO (New York)
Phone: +1 (212) 747-1118
Email: cxdc@chinaxd.net
Investor Relations: Citigate Dewe Rogerson
Ms. Vivian Chen, Managing
Director
US: +1 (347) 481-3711
Email: Vivian.chen@citigatedr.com
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SOURCE China XD Plastics Company Limited